Emaar first-half profit soars 12%

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Emaar first-half profit soars 12%
Emaar said its property business recorded positive growth during the first half with revenue of Dh4.341 billion.

Dubai - Property developer's Dh7.257 billion marked an 11 per cent growth over the previous year's first half revenue of Dh6.520 billion

by

Issac John

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Published: Sun 31 Jul 2016, 7:00 PM

Last updated: Mon 1 Aug 2016, 10:28 PM

Emaar Properties recorded on Sunday a 12 per cent increase in net profit to Dh2.475 billion in the first six months ended June 2016 compared to Dh2.205 billion recorded during the same 2015 period.
For the second quarter, the Dubai-based global developer reported an eight per cent rise in net profit to Dh1.27 billion compared to Dh1.18 billion profit in the year-earlier period.
The developer said its half-year revenue of Dh7.257 billion marked an 11 per cent growth over the previous year's first half revenue of Dh6.520 billion. In the second quarter, Emaar posted a revenue of Dh3.73 billion, up from Dh3.50 billion a year earlier, the developer said in a statement.
Emaar's recurring revenues from its malls & retail and hospitality & leisure segments rose to Dh2.916 billion, which is 40 per cent of the total first-half revenue.
Revenues from Emaar's global operations, accounting for 14 per cent of the total revenue, were Dh1.032 billion in the first half. 2016. The developer said it recorded total sales at Dh10.44 billion during the first six months and now has a backlog of Dh45.90 billion to be recognised over the next three to four years.
Mohamed Alabbar, Chairman of Emaar Properties, said that the strong half-year results highlight the success of Emaar's growth strategy to consolidate its position as the largest developer of iconic projects in Dubai with a sizeable sales backlog, and to build its recurring revenues.
"We are in one of the most exciting phases of our growth story having launched a brand-new icon for the city - The Tower at Dubai Creek Harbour - and the imminent roll-out of Dubai Opera in Downtown Dubai. We are scaling up our malls business with the launch of a Retail District in Dubai Creek Harbour and the expansion of The Dubai Mall. We are also strengthening our hospitality portfolio with 35 new hotels and serviced residences in the UAE and international markets."
Alabbar said Emaar's commitment is to create long-term value for its stakeholders. "We will continue to explore opportunities to develop new land banks in Dubai through integrated developments that support the Dubai Plan 2021 and the preparations for Expo 2020."
Emaar said its property business recorded positive growth during the first half with revenue of Dh4.341 billion, which is 20 per cent higher than the property business revenue during first half 2015 at Dh3.620 billion.
The total property sales for the period were at Dh10.44 billion, an increase of 23 per cent over the same 2015 period. Dubai accounted for Dh 8.854 billion of this, 45 per cent higher than the property sales in Dubai during the first six months of 2015.
Emaar said the Dubai sales were led by the launch of The Address Residences Dubai Opera and Il Primo in Downtown Dubai, premium Fairway Vistas & Sidra villas in Dubai Hills Estate, 52/42 prime waterfront developments in Dubai Marina and Harbour Views at Dubai Creek Harbour. Demand for homes in Dubai Creek Harbour spiked with the launch of The Tower.
Emaar Malls, the shopping malls and retail business majority-owned by Emaar Properties, reported first half net profit of Dh987 million, 17 per cent higher than the net profit of Dh845 million   during the same period last year. Revenue for first half from the malls business is Dh1.618 billion, 11 per cent higher compared to the same 2015 period.
The hospitality & leisure, commercial leasing and entertainment businesses recorded revenue of Dh1.298 billion.
Occupancy levels at The Address Hotels + Resorts were 86 percent, higher than the industry average. The Address Boulevard Dubai, a brand new addition to the portfolio will open soon. Emaar launched the first mid-market brand hotel - the Rove Downtown Dubai - this year with nine more Rove hotels scheduled to open in central locations by 2020.
Emaar said it had been upgraded to Baa3 long-term issuer rating by Moody's Investor Service with 'stable' outlook highlighting its financial strength and ability to create sustained shareholder value through its ongoing projects and assured recurring revenues from its malls and hospitality businesses.
Emaar and Emaar Malls together distributed over Dh2.375 billion in dividends this year. Emaar has handed over more than 40,600 homes already, and has over 14,000 residential units in development in the UAE. With total assets valued at over Dh165.7 billion, Emaar has a land bank of 196 million sq m in UAE and international markets that will support its long-term growth.
-   issacjohn@khaleejtimes.com
 
 


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